FG may soon declare NNPC sole importer of petroleum products

Before now, the importation of petroleum products was done by the commercials, but since this responsibility was handed down to Crude Oil Marketing Department (COMD), there has been delay in arrival. The COMD most times do not realise the urgency needed when importing products. In practice, the COMD sells crude oil, then buys refined products with the proceed, and this sometimes causes the delay.

In view of this, there are indications that Federal Government has plans to restrict major and independent marketers from import of petroleum products beginning from the second quarter of 2016.

This is  allegedly due to the failure of the marketers to deliver the 22 percent allocation granted to them which is causing the current scarcity of petrol in the country. Consequently, the Petroleum Products Pricing Regulatory Agency (PPPRA) may allocate 100 percent of petroleum products import to the Nigerian National Petroleum Corporation (NNPC) in the second quarter.

The PPPRA is expected to release the list for the second quarter import as well as review the N86.50 per litre of petrol as prescribed by the price modulation regime. Even within the NNPC itself, the relocation of petrol importation from commercial to Crude Oil Marketing Department (COMD) has further exacerbated the importation bottlenecks.